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Ineratec’s mini power plant is so small it can fit inside a shipping container. KIT says there are three parts to the system: a microstructured reactor, a direct air capture unit created by VIT, and an electrolysis unit which runs on solar power created by Lappeenranta University of Technology (LUT). The direct air capture unit extracts CO2 out of the air and then the reactor converts the CO2 and regenerative hydrogen via the electrolysis unit into fuel. The Ineratec founders say the system can produce gasoline, kerosene, or diesel.

Ineratec founder Tim Böltken told New Atlas, “We supply an entirely new, modular technology that is a real alternative to the costly large chemical facilities used for the conventional gas-to-liquid process.” Böltken said there are many other possible applications for the plant, including gathering fuel from sewage treatment facilities. He also suggested organic farmers might be able to use the system to generate energy.

VTT Principal Scientist Pekka Simell said in a statement, “The project will produce expertise for enterprises in various fields, and it will result in a multidisciplinary industrial integration that no one company can achieve on its own.”

VTT and LUT will build a demonstration plant set to being operating this year, and in 2017 LUT plans to continue testing. According to KIT, Ineratec is planning to commercialize the compact plant, which could hit the market in 2018.